Business
Bri-Chem Corp. Announces Q1 Results
Bri-Chem Corp. Announces Q1 Results.
About this update from Bri-chem Corp.
[{"type":"text","content":"\n\n\n\nTSX Venture Exchange Symbol "BRY"\n\n\nEDMONTON, May 30 /CNW/ - Bri-Chem Corp. (the "Company") (TSX Venture\nExchange: BRY) a leading Canadian wholesale distributor of drilling fluids,\nproducts and services, today announced its financial results for the first\nquarter ended March 31, 2007. As a result of the reverse take-over by\namalgamation with Gwelan Supply Ltd. effective January 1, 2007, the\ncomparative financial figures reflect those of consolidated Gwelan Supply Ltd.\noperating as a private company and certain of the prior period's figures have\nbeen reclassified to conform to the presentation of the current period\nconsolidated financial statements. A complete copy of the Company's report is\navailable on the Internet at www.sedar.com.\n\n\nNet earnings from operations for the three months ended March 31, 2007\nare $900,505 or $0.074 fully diluted earnings per share and earnings before\ninterest, taxes, depreciation and amortization for the same period are\n$1,312,997. Consolidated revenues were $13,136,256 during the first quarter of\n2007 a decline of 43.4% when compared to the same period last year.\n\n\nThe main factor negatively impacting the Company's revenues is the 22%\ndecrease of the number of wells drilled in Canada during the first quarter as\ncompared to the same period last year as drilling rig utilization rates\ndeclined to 58% from 80%. Traditionally, the Company's busiest region for the\nwinter drilling season has been the north eastern portion of British Columbia\nor, more specifically, the Fort Nelson area and the Fort St. John area. These\nareas have, in the past, produced a large portion of overall winter sales. In\nthe first quarter of 2007, drilling activity in these areas was down 46% with\nonly 441 wells drilled in the area as compared to 811 wells drilled during the\nsame period last year. More specifically, two major oil and gas companies\ndrilling activity, which represented a significant amount of our customers\nwork last year, dropped 63% from 267 wells to 98 wells. As well, the early\narrival of spring like conditions in the first part of March further reduced\noilfield activity. The Company has witnessed a decline in revenues from the\nAlberta warehouses of approximately 22% which is consistent with the decline\nin overall drilling activity.\n\n\nOutlook\n\n\n...